Blackdog Resources Ltd.
TSX VENTURE : DOG

Blackdog Resources Ltd.

July 06, 2011 08:00 ET

Blackdog Resources Ltd. Announces Year Over Year Q1 Revenue Increase of 191%

CALGARY, ALBERTA--(Marketwire - July 6, 2011) - Blackdog Resources Ltd. ("Blackdog" or the "Company") (TSX VENTURE:DOG) is pleased to provide an update on its Q1, 2011 operations.

Selected highlights of the Company's results are as follows:

  • Revenue increased to $1,166,407 (2010-$400,337). This represented a year over year Q1 increase of 191%.
  • Barrels of oil ("bbls") per day increased to 152 bbls (2010-60 bbls). This represented a year over year Q1 increase of 153%.
  • Operating Netbacks increased to $362,079 (2010-$157,046). This represented a year over year Q1 increase of 131%.
  • Funds flow from operations increased to $246,344 (2010-$45,539). This represented a year over year Q1 increase of 441%.
  • General and Administrative costs decreased to $100,788 (2010-$108,588). This represented a year over year Q1 decrease of 7%.
  • Participated in drilling with 15% working interest ("W.I.") in the Company's first non-operated horizontal Cardium oil well (the "Cardium Well") in Pembina, Alberta.
  • Cardium Well flowed approximately 1,000 bbls (net 150 bbls) during test period and commenced commercial production on March 18, 2011.
  • Installed power for Enhanced Oil Recovery/Salt Water Disposal ("EOR/SWD") well at Woking, Alberta on March 8, 2011 (Company estimates future monthly saving on rental generator, diesel fuel and labour at $15,000 per month).

David A Corcoran, President of Blackdog commented, "Blackdog is very pleased with the continued growth of our business in Q1, 2011. The weather in Northern Alberta was exceptionally challenging and cold for extended periods throughout the entire quarter which caused multiple freeze up of wells and higher than expected operating costs. However, the Company managed to diligently work through these issues and maintain our focus on increasing production and netbacks and as a result even in these tough conditions we are very pleased with our quarter end results. Not included in any of our financial results is the rebate from the Ministry of Energy in Alberta that the Company expects to receive as a result of the drilling credit rebate it applied for subsequent to the end of the first quarter. The Company applied for a royalty rebate net to the company of approximately $265,000 during Q2, 2011. This is for royalties paid during the period of April 1, 2010 – March 31, 2011.

Blackdog is further delighted with the excellent results of the Cardium Well. The Cardium Well was completed with a water based fracture stimulation which cut the costs by over $300,000 (net $45,000) from our original budget and as there was no load oil to recover, the well began producing virgin oil almost immediately. The operator of the Cardium Well has stated that it intends to apply to increase the drilling density to 8 wells per section from the current 4 wells per section on this section of land and also to instigate a water drive to increase the long term reserves of the well. Although the Cardium Well had an immaterial effect on the Company in Q1, 2011 due to commencing production so late in the quarter, the Company believes it will provide significant additional production and cash flow for the Company for years to come."

Blackdog Resources Ltd. is a junior oil and gas Company focused on the development of light and medium oil with producing assets in South East Saskatchewan and Alberta. The Company has 24,574,318 common shares outstanding.

Certain information regarding Blackdog in this news release, including management's assessment of future plans and operations, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, production, marketing and transportation, loss of markets, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Blackdog's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements or information contained in this news release are made as of the date hereof and Blackdog does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

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